UNIVERSITY OF VIRGINIA
FINANCIAL AND ADMINISTRATIVE POLICIES MANUAL
TITLE: BUDGETARY CONTROL POLICY: III.A.2x
Overview
The following policies govern the budgetary control process. An
explanation is provided identifying the roles of the University
Budget Office, department/ activity heads, persons responsible for
individual accounts, and fiscal administrators in carrying out the
budgetary control policies. The policies articulate ways in which
budgetary control impacts each of the three divisions of the
University. Special budgetary control situations, such as those
related to sponsored programs, are covered. The policies apply to
all University funds, both State and Local.
Determination of Levels of Budgeting
The University Budget Office has primary responsibility for
determining the level of budget detail at which operating budgets
and capital budgets will be established. The requirements placed
on the University by the State to control and specifically budget
certain expenditure categories are major factors in determining the
categories for which budgets are established.
Major responsibility for determining levels of budgeting is
delegated as follows:
Area Delegated To
Sponsored Programs Director, Office of Sponsored Programs
Medical Center Vice President and Provost for Health
Sciences
Clinch Valley College Chancellor, Clinch Valley College
Responsibility for Establishing and Approving Initial Budgets
The University Budget Office has primary responsibility for
establishing all initial budgets on an annual basis unless
specifically excepted in this statement. All budgets entered as
transactions to the University Financial Accounting System must be
approved by the University Budget Office and must be consistent
with the annual operating or capital budgets approved by The Board
of Visitors.
The Office of Sponsored Programs has been delegated full authority
to establish and approve initial project period budgets related to
sponsored program accounts subject to any restrictions placed by
the sponsor and consistent with the operating budget of the
University.
Authority to establish initial budgets for Agency Code 209 (Medical
Center) is delegated to the Vice President and Provost for Health
Sciences subject to guidelines established by the University Budget
Office.
Responsibility for Budget Revisions
The University Budget Office has primary responsibility to approve
and transact all budget revisions unless specifically excepted in
this statement. All budget revisions entered as transactions to
the University Financial Accounting System must be approved by the
University Budget Office and must be consistent with the annual
operating or capital budgets approved by The Board of Visitors.
The Office of Sponsored Programs has been delegated full authority
to establish and approve project period budget revisions related to
sponsored program accounts subject to any restrictions placed by
the sponsor and consistent with the operating budget of the
University.
Authority to revise operating budgets for Agency Code 209 (Medical
Center) is delegated to the Vice President and Provost for Health
Sciences subject to guidelines established by the University Budget
Office.
See also Procedure 3-1, "Preparation of Request for Budget Change
and Notice of Budget Amendment."
Responsibility for Monitoring Actual Expenditures and Revenues
Relative to the Budget
It is the policy of the University that persons responsible for
operating accounts adhere to budgets which are approved directly or
indirectly by The Board of Visitors and included in the University
Financial Accounting System. It is the responsibility of the
University Budget Office to monitor accounts to identify
expenditure or revenue activity which is inconsistent with approved
budgets.
Major responsibility for monitoring and controlling operating
budgets is delegated as follows:
Area Delegated To
Sponsored Program Accounts Director, Office of Sponsored Programs
Medical Center Vice President and Provost for Health
Sciences
Clinch Valley College Chancellor, Clinch Valley College
Authority rests with the University Budget Office to prohibit
expenditures and reallocate revenues which are at variance with
approved budgets. The University Budget Office will contact
departmental and school officials, as appropriate, to correct
overbudget conditions.
Budgeting of Agency Accounts
By definition, agency accounts are held by the University of
Virginia in a custodial capacity. Accordingly, The Board of
Visitors does not have operational control over the revenues and
expenditures in agency accounts. It is the policy of the
University to exclude agency accounts from the annual operating
budget, except where an employee is paid from both agency and non-
agency funds. In this case, the budget reflects the agency
component of the individual's salary for information purposes only.
Application of Fund Sources to Capital Projects
Capital outlay projects are frequently funded from more than one
source, and it is University policy to apply the resources in the
following order:
State - General Fund
State - Indirect Cost Recoveries and Sponsored Programs
State - Hospital Revenues
State - Auxiliary Enterprises
Treasury Anticipation Loans (includes Revenue Bond amounts)
University (Local) Funds
The Budget Office monitors compliance with this policy.
Responsibility for the Financial Review of Capital Outlay Requests
and Related Submission.
It is the responsibility of the University Budget Office to review
and approve the financial data pertaining to all capital outlay
forms prior to their submission to the central State agencies. It
is the policy of the University that the source of all funding for
capital projects be confirmed by the University Budget Office as
part of the review/approval process.
Coordination of capital outlay projects with the State Department
of Planning and Budget is the responsibility of the University
Budget Office.
No capital outlay form may be approved by the University Budget
Office without a recommendation for approval by the appropriate
Vice President or his official designee and without concurrence
from Facilities Management.
ISSUED BY: 07/09/93
Director of the Budget 3.1.2.1